How to get the best auto loan deals with poor credit.
Although many choose to ignore their credit rating the fact is that our credit score affects us in more ways than we care to notice. Our credit rating can affect our chances of being granted a house, a car, adoption, and even our jobs. This is never as clear as when we try to get an auto loan. The reason for this is that cars by their very nature are extremely bad investment, very useful and fun to use, but ultimately a bad investment that depreciates in value faster than milk on a summer day. The consequence is that banks and finance companies are very wary to who they lend money to buy a car. The reason is that if the borrower defaults payment getting the car back might not pay for the capital lent to the client. What does all this mean to you and me? Well if your credit score is low it means that most “kosher” lenders are going to tell us to take our business elsewhere. What can we do when that happens?
What can you do when you got bad credit?
Not much 
is the unfortunate answer. Apart from paying top dollar for your auto loan. That is the honest answer. When you see, bad credit, no problem or “your job is your credit” adverts, beware. There is a reason why they will take anybody and everybody on. The reason being they charge such outrageous interest rates they can afford the occasional borrower not paying his loan. It does not stop them from repossessing his car though! The best thing you can do when you have bad credit is to try and improve it. Getting an auto loan is actually one of the ways of improving your credit score. Buying an inexpensive car you can pay off quickly will go a long way to proving you are a new man/woman and should be upgraded to premium customer.
Tips for subprime / bad credit customers.
So you have bad credit and you still need a car. How do you go about getting the best deal possible. My first piece of advice is to find your own finance, do not rely on the car dealer. They have an interest in you paying the highest interest and fees possible. It is much better to get a pre-arranged finance deal with a bank or finance company. You can always do your best to shop around and see if the auto dealer can improve your deal. Just one piece of advice on getting finance from the auto dealer, apart from don’t do it, make sure you sign a contract that states your finance is approved and arranged. A favorite “trick” of dealers is to inform you weeks later that your finance fell through and that you will have to do with their second option for financing which of course is much more expensive.
Paying over and above the average because of bad credit is painful, however remember every payment you make on time is a month closer to good credit status.